Buyer’s Remedies When a Seller Breaches a Residential Real Estate Contract in Florida

By John M. Jorgensen, Esquire
Partner
Scott, Harris, Bryan, Barra & Jorgensen, P.A.

In Palm Beach County and throughout Florida, the “As Is” Residential Contract for Sale and Purchase (commonly referred to as the FAR/BAR Contract) is used for most home sales. This article explains a buyer’s remedies when a seller breaches the FAR/BAR contract by refusing to close after the buyer has satisfied all contractual conditions.

When Does a Seller Breach the FAR/BAR Contract?

A seller breach typically occurs when the buyer has met the contractual conditions to close, such as:

• The initial deposit has been made
• The inspection period has expired
• Loan approval has been obtained (if the buyer is financing)
• All other closing conditions have been satisfied
• The seller refuses to close

At that stage, the buyer has fulfilled their obligations. If the seller refuses to proceed, the buyer must decide how to respond.

Option 1: Demand Return of the Deposit

When a seller refuses to close, a buyer may take the expedient route by demanding the return of the buyer’s deposit being held in escrow and waiving any other claims the buyer may have for the seller’s breach. If the buyer chooses this remedy, the deposit is returned and the contract is canceled.

Option 2: Pursue Damages or Specific Performance

If a buyer wishes to pursue other remedies for damages or specific performance of the contract, in addition to return of the deposit, the FAR/BAR contract requires specific steps before a lawsuit is filed.

Step 1: Attempt Deposit Resolution (10 Days)

The FAR/BAR contract requires that the seller and buyer first try to settle their conflicting demands for the deposit within 10 days after the demands are made.

Step 2: Mediation

If a settlement is not reached within that 10-day period, the parties must attempt settlement through mediation. The costs of mediation are split equally between the parties, and if attorneys are involved, then the buyer and seller must pay for their own attorney’s fees.

If Mediation Fails: Filing a Lawsuit

If mediation does not result in a settlement, then a buyer may file suit. Generally, a buyer has two primary remedies: the buyer may sue for return of the deposit and damages, or sue for specific performance.

Remedy 1: Sue for Damages

A suit for damages may include the loss of the benefit of the bargain the buyer had under the contract. For example, if the home being purchased has an appraised value of $600,000 and the contract price is $500,000, then the benefit-of-the-bargain damages would be $100,000.

Alternatively, a buyer’s damages could include costs incurred by the buyer in anticipation of closing, such as:

• Moving expenses
• Costs to obtain a loan
• Other pre-closing expenses incurred by the buyer

Remedy 2: Sue for Specific Performance

A buyer also has the remedy of specific performance. If a buyer really wants the home, then a lawsuit may be filed demanding that the seller close the contract.

When specific performance is pursued, a lis pendens must be recorded in the public records. This serves as notice to other potential buyers that a specific performance lawsuit has been filed and helps prevent the seller from selling the property to a third party during the pendency of the lawsuit.

If the suit for specific performance does not settle prior to trial and the buyer prevails at trial, then the judgment that is entered effectively acts as a conveyance of the property.

Attorney’s Fees and Costs

In any lawsuit filed, the prevailing party (if the case goes to trial) will be awarded attorney’s fees and costs.

Why Legal Guidance Matters in Palm Beach County Real Estate Disputes

Residential real estate transactions in West Palm Beach, North Palm Beach, Jupiter Farms, Singer Island, Loxahatchee, Tequesta, and surrounding areas often involve significant financial stakes. A seller’s refusal to close can disrupt relocation plans, financing commitments, and investment opportunities. Early legal guidance can help preserve your rights, ensure proper escrow procedures, and evaluate whether damages or specific performance is the most appropriate remedy.

Speak With a Palm Beach County Real Estate Attorney

If a seller has refused to close on your Florida residential real estate contract, you may have enforceable legal remedies beyond simply recovering your deposit. Scott, Harris, Bryan, Barra & Jorgensen, P.A. assists buyers throughout Palm Beach County with real estate contract disputes, closings, and litigation.

Contact our office to discuss your rights and options.

Frequently Asked Questions

What happens if a seller refuses to close in Florida?

If a seller breaches a Florida real estate contract, the buyer may demand return of the deposit, pursue damages, or seek specific performance through litigation.

What is specific performance in Florida real estate?

Specific performance is a lawsuit asking the court to compel the seller to complete the transaction under the contract terms.

Can I recover attorney’s fees in a Florida real estate dispute?

Under the FAR/BAR contract, the prevailing party in litigation is generally entitled to recover attorney’s fees and costs if the case goes to trial.

Is mediation required before filing a lawsuit?

Yes. The FAR/BAR contract requires an initial attempt to resolve deposit disputes within 10 days and then mediation if no settlement is reached, before litigation proceeds.